Amazon says it had Biggest Three Hours of Signups – Amazon’s massive investment in live NFL streaming is already bearing fruit.
According to an internal memo obtained by Tech News from Amazon executive Jay Marine, the company reported the “biggest three hours for U.S. Prime signups ever” during last week’s Thursday Night Football game.
The Chargers-Chiefs game was the first installment of Amazon’s reported $11 billion, 11-year exclusive streaming rights agreement with the NFL.
Amazon has aired Thursday Night Football games for several years, but this was the first exclusive stream, which meant that Amazon was the only place to watch the game. For the most part, this necessitates fans having a $139/year (or $14.99/month) Prime subscription.
Increasing Prime signups is critical for Amazon because the membership programme is a critical part of its business. According to surveys, Prime members spend significantly more on Amazon.com than non-Prime members.
Increasing the number of subscribers is also timely as competitors such as Walmart and Target launch or expand their own membership programmes. Even Disney, which has heavily invested in streaming, is reportedly looking to offer similar programmes.
Amazon certainly used the game as an advertising vehicle for Prime, using advertisements to promote the programme and content such as Amazon’s new Lord of the Rings show.
Earlier this year, the company raised the annual cost of a U.S. Prime membership by $20 to $139 to help offset increased costs due to labour supply shortages, higher wages, supply chain issues, and additional shipping costs. This prompted The Washington Post to launch an interactive quiz to help customers determine whether the membership is worthwhile.
In addition to streaming live sports and other video content, Prime members receive free shipping, cloud storage, Whole Foods discounts, and other perks.
Amazon reported subscription service revenue of $8.7 billion in the second quarter, up 10% year on year. Amazon Prime has over 200 million members worldwide.
According to Marine’s memo, Thursday Night Football was the “most watched night of primetime in the United States in the history of Prime Video,” with viewership exceeding expectations. He also called the stream a “huge technical achievement” because it ran without major interruptions or delays.
Amazon’s NFL deal is the latest example of live sports moving online and away from traditional cable TV, with tech behemoths such as Apple competing for lucrative streaming rights.